Reasons Why You Have a Stagnant Business

Reasons Why You Have a Stagnant Business

Starting a business is tough, but generating profits is tougher. Nothing can be more frustrating than working round the clock and generating no profits compared to the input. Failing to produce profits poses a serious threat to the survival of a business.

You are living in a world where you need to constantly evolve your strategy to streak ahead. If your business is growing with a slow pace, the day is not far in the future when you will be shutting down it. 

You may think that this problem is common among start-ups, but the fact is every business faces this phase once in a lifetime. Several businesses shut down after a decade when newcomers take hold of the market. Whether your business is small or big, the following reasons can account for the slow growth of your business.

Your team is running on empty

A business grows with a strategy. Because of its dynamic nature, you need to evolve it. The strategy that works today will not work for you tomorrow due to many reasons. Your customers may stop buying your product or service or you will have more competitors selling the same thing at lower prices with advanced features. 


  • Try to analyse the competition.
  • Look for what your customers want. 
  • It is important that your products and services are better than your competitors, and you are meeting your customers’ needs. 
  • Think of new ideas.

You are complacent with your achievements

In the beginning, you set your heart on goals and you thankfully succeed to achieve them. Once you achieve your target, you can be complacent. This is when your business growth gets slower.

It is good you have achieved your target, but it does not mean that there is nothing more to work on. You have achieved level 1, now is the time to think about level 2. Remember that you are dying if you are not growing.


  • As you get satisfied with your achievement, ask yourself WHAT IS NEXT.
  • Make sure that everyone in your organisation knows goals, strategies and they are working in the right direction.
  • If you find your employees are complacent, you should talk to them, motivate them, and encourage them to show their strength.

Your sales strategy is poor

You need to focus on all your clients to grow in the long run. Sometimes entrepreneurs target big sales only that may help you quickly have a bigger cash inflow, but it will not be profitable in the long run. 

You should have a common strategy that targets both small and big clients. Further, your price strategy should be effective. You may think lower prices can help attract a large number of customers, but you may fail to cover your cost. 


  • Value all your customers. Whether they place a small order or a big order, you should not be biased.
  • Instead of selling your products or services at low prices, you should look for opportunities to add value to your products.
  • Instead of focusing on mass sales, focus on quality sales. If you provide value to your users, they will never mind paying even higher prices.

You are not utilising funds appropriately

How you utilise funds plays a paramount role to decide the growth of your business. Being frugal is good, but ignoring the importance of investment is not good at all. As you get a good opportunity, you should not fight shy of spending money. Idly lying resources will not be beneficial at all. Money begets money if you invest it. 


  • Long-term investments may set you back, but you should go ahead if you think that it is worth spending money.
  • Never let golden opportunities go away even if you do not have enough funds because you can take out guaranteed loans. 

You are not focusing on core activities

Since you are a part of top-level management, you need to focus on core activities. Marketing and sales strategies, pricing, the introduction of a new product line, you need to make all these decisions, leaving rest tasks for middle level and lower-level management. The problem arises when you embroil yourself into smaller tasks such as tracking overdue payments, 


  • Learn how to delegate responsibility to your employees. Divide tasks among them and track their performance from time to time.
  • Never divert your attention from core activities. 

To keep your business growing, you need to make sure that you focus on core activities and your team is equally motivated to achieve these goals. It is good to be satisfied with your achievements, but you do not need to sit idle. You should start thinking about the next level.